Union Budget 2015-16 India Live: FY16 defence allocation at Rs 2.46 lakh crore.

12.00: FY16 defence allocation at Rs 2.46 lakh crore.

11.59: The Budget announced allocation of Rs 33,150 crore towards healthcare.

11.58: In a bid to boost north eastern states, The Union Budget proposed setting up of film institute in Arunachal Pradesh.

11.55: To allocate Rs 75 crore for electric vehicles

11.54: The governemt will do away with distinction between FPIs and FDIs

11.48:To incentivise credit, debit card transactions. Indians will be encouraged to go the RuPay way. The government will introduce made in India gold coins to reduce demand for foreign coins.

11.42: to set up 5 ultra mega power projects of 4,000 mw

11.35: As a major incentive, jaitley proposed tax-free infra bonds for road, railways & infra projects. In the same direction, he announced setting up of national infrastructure fund. The government will introduce regulatory reform law for infrastructure

11.34: To lift infrastructure, expenditure in the sector will go up to Rs 70000 crore. He said road outlays will increase by Rs 14,031 cr in FY16. 11.31: The finance minister said non-banking finance corporations (NBFC) will be treated at par with banks if they have a size of over Rs 500 crore

11.26: He also proposed Rs 20,000 crore for Mudra Bank to boost SMEs 11.24: Jaitley proposed to allocate Rs 5,300 crore for micro-irrigation, Rs 25,000 crore for rural infrastructure and Rs 34,699 cr for MNREGA. He also proposed Rs 8.5 lakh crore Farm Credit in FY16

11.20: Direct transfer of benefits to be further expanded. Jaitley also mentioned the government is considering scaling up of disinvestment target

11.18: Firm on achieving medium-term fiscal deficit target of 3 percent of GDP. Hoping to achieve fiscal deficit of 3 percent by FY18

11.13: Likely to end FY15 with GDP of 7.4%

11.10: Expect monetary policy easing ahead as CPI inflation will only go lower. Expect CPI to remain close to 5 percent by year-end. Formation of monetary policy committee shortly.

11.07: GST to be in place by April 1, 2016

11.06: Embraced states as equal partners of growth. In a span of 100 days, made Jan Dhan Yojna a success. Swacch Bharat transformed into movement to transform India. Target of building 6 crore toilets. It i a step towards preventive healthcare.

11.03: India 2nd best stock market, current account deficit (CAD) for FY15 to be below 1.3 percent of GDP

11.02: Govt taken several steps to energies the Indian economy

11.01: I present the Budget in a far better economic environment than in the past: Jaitley

11.00: Finance minister Arun Jaitley begins Budget speech. Market up 236 points.

10.53: Cabinet approves Union Budget 2015-16. Finance minister Arun Jaitley to begin speech shortly.

10.43: If the Budget facilitates right incentives, Nilesh Shah of Kotak Mah AMC, thinks that alone can see domestic savings being channelized into stock markets. It will take market higher. If retirement savings are offered incentive schemes, that alone can help a long way. He says market has become quite optimistic post yesterday’s Economic Survey.

10.39: The market is expecting a lot of things including announcement on public spending and planned expenditure. If there is no specific thrust on infrastructure then it may not be taken kindly by the market, says Nirmal Jain.

10.29: The PPP model has to be fairer towards the private sector, says Biocon chief Kiran Shah Mazumdar who believes that is a majot step to seek private sector investments. She hopes to see major announcements with regards to start-ups. 10.24: E&Y chairman Memani says he is looking forward to details on how the government plans to raise funds for its recently announced plans

10.20: Sunil Munjal expects the finance minister to lower exemptions and introduce moderate tax rates. He is also hoping the Budget speech focusses on labour reforms and clariefies on GST.

10.03: Ashok Wadhwa, Group CEO, Ambit Holdings Pvt Ltd believes the finance minister may increasing service tax rate. If concessions are provided to any sector, then the government should not bring legislations through backdoor. He hopes the finance minister is forthrigh enough to paln things for a five year period, and not destroy confidence of investor community by taking back incentives in the form of tax.


Union Budget 2015-16 India Update : Expect to see big rhetoric on growth

In an interview, Gautam Chhaochharia of UBS Securities spoke about his expectations of Union Budget 2015. He expects to see a big rhetoric on growth and reforms today and is overweight on financials and consumer discretionaries. According to him, roadmap to bring down tax rates will be seen as big positive.

Chhaochharia believes that fiscal deficit numbers based on credible revenue assumptions to be taken positively.


Live Budget Update By Epic Research : Expectations of SMEs from Union Budget 2015

Economic Survey_7

SME sector in India is flourishing with the immense support by the current Government. Indian SME s are the undisputed power house of the economy today. Not only are they generating millions of employment opportunities but are significantly contributing to our country’s industrial output. However, there is a need to bridge the challenge and expectation gap that exists today. While we see a positive trend in the start-up space in India, there are still challenges that act as roadblocks to their growth.

The SME sector has high hopes from the upcoming Union Budget. Recent announcements from both the Prime Minister and the Finance Minister have made it clear that the upcoming budget will be a marked departure from the current way the sector is functioning. The government is coming up with M SME policy soon and the sector is upbeat that the current government will address glitches faced by this sector. With the launch of campaigns like Make in India, Digital India and Swachh Bharat Abhiyan, the sector will get the needed impetus as the success of Make in India stems from the SME sector.

The previous budget allocated Rs 10,000 crores to the start-up s and also showed a way forward for the growth of this sector. The government is committed and dedicated to the M SME sector and can deliver better on its promises of reviving this sector and making business a less traumatic process for entrepreneur s by incorporating a few more suggestions the sector has. Despite its commendable contribution to the nation’s economy, SME sector is still lagging behind. There is a need to remove the bottlenecks – discrepancies in incentive schemes that include taxation, subsidies, credit based procurement of raw materials / input, etc.

The government should provide a stable industrial environment to strive for operational cost-effectiveness that will help to increase access finance for SME s which still remain a major problem. The economic environment needs to be more flexible for the sector. Also the complex set of compliance mechanism that needs to be followed to get clearance on starting a new business should be made simpler. A more simplified legal framework is required to ensure the growth of the start-up s. In addition, technological backwardness is a major concern for start-up s. The government should incentivize tech infrastructure for start-up s.

Banks should be frontrunners in enhancing institutional credit at cost-effective rates especially to M SME s, whose demands account for 97 per cent of the viable debt gap. Also, the prime responsibility of refinancing and recapitalizing small and micro lending and investing services/ institutions rests on banks. Banks are expected to develop adequate debt restructuring and insolvency resolution regimes to mitigate investment risks and control the burden of non-performing assets.

A quicker implementation of the GST will also pace up the SME growth. The Government has been contemplating on the implementation of the GST. Once the GST is implemented there will be a single marketplace which will break tax barriers between states, bringing in a uniform tax rate across the country. A stable indirect tax regime and the patronage of both Central and State government is the need of the hour to nurture the SME sector to reach greater heights.

M SME currently accounts to more than 38 million and contribute more than 38 per cent to India’s manufacturing output, 40 per cent to the total exports and is able to create 106 million jobs every year. Due to very high cost of business acquisition, low media budget, non participation in international events, the M SME branding and visibility is extremely poor. Hence, the finished products only contribute 17 per cent to the country’s GDP. Given that, channelization of finished products of the SME sector is the need of the hour.

With the start-up ecosystem evolving rapidly in India, it is probably the best time for small and medium enterprise ( SME s) to enter the market. The unfavourable taxation regime, high cost of starting a business and archaic laws, rules and regulations make the country indeed a hard place to set-up and run a business. The schemes are in place, but it is required to enhance the responsiveness and outreach of such schemes.

The government is well aware of the importance of the SME sector. The sector is positive about the Union budget that will be unveiled on February 28, 2015 given the forward looking policies planned by the current Government.


Union Budget 2015-16 Economic Survey : Link public support to Railways with reforms

Suffering for a long time from underinvestment, Indian Railways need greater public investments but the support should be clearly linked to reform of the structure of the organisation. Public investment in an efficient rail network can have positive effect on both manufacturing and aggregate output, and the effects are permanent, said the Economic Survey 2014-15 tabled in Parliament on Friday. It also envisioned “corporatised Railways entities” in the long run.

Successive plans have allocated less resources to the Railways compared to the transport sector, it added. “The share of Railways in the total plan outlay is currently only 5.5 percent vis-i-vis about 11 percent for the other transport sectors and its share in overall development expenditure has remained low at below 2 percent over the past decade,” the survey said. Highlighting the difference with that of China, it added: “In per capita terms, China has invested on an average 11 times as much over the same period, even though both countries have similar populations.” Underinvestment in the Indian Railways is also indicated by congestion, strained capacity, poor services, and weak financial health, it added.

Highlighting the difference with that of China, it added: “In per capita terms, China has invested on an average 11 times as much over the same period, even though both countries have similar populations.” Underinvestment in the Indian Railways is also indicated by congestion, strained capacity, poor services, and weak financial health, it added. Stressing on the need of support from government, it said: “Greater public investments once utilised efficiently can help the Railways to overcome some of these problems. In the interim, there is scope for public support of Railways, including through assistance via the general Budget”.

It, however, added: “any public support should be clearly linked to serious reform; of the structure of the Railways; of their adoption of commercial practises; of rationalising tariff policies and through an overhaul of technology”. The document further said that in the long run, the Railways must be commercially viable and public support for it should be restricted to equity support for investment by the corporatised Railways entities, and for funding the universal service obligations that it provides.

It also said there is a need for bold, accelerated programme of investment in dedicated freight corridors (DFCs) that can parallel the Golden Quadrilateral in the road sector alongwith associated industrial corridors. “Such an initiative will transform Indian manufacturing industry with “Make in India” becoming a reality,” it added. This impetus has the potential to boost greater private investment and do so without jeopardising India’s public debt dynamics, the survey said.

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